\u3000\u3 China Vanke Co.Ltd(000002) 049 Unigroup Guoxin Microelectronics Co.Ltd(002049) )
Key investment points
Event: the company released its annual report for 2021 on April 21. In 2021, the company achieved an operating revenue of 5.342 billion yuan, a year-on-year increase of 63.35%, a net profit attributable to the parent company of 1.954 billion yuan, a year-on-year increase of 142.28%, and a deduction of non attributable net profit of 1.796 billion yuan, a year-on-year increase of 158.10%. The company released the first quarterly report of 2022 on April 26. In 2022q1, the company achieved a revenue of 1.341 billion yuan, a year-on-year increase of 40.84%, a net profit attributable to the parent company of 531 million yuan, a year-on-year increase of 63.91%, and a deduction of non attributable net profit of 508 million yuan, a year-on-year increase of 64.76%.
The scale effect is prominent and the performance is growing rapidly. On the revenue side, the company realized an operating revenue of 5.342 billion yuan in 2021, a year-on-year increase of 63.35%, and an operating revenue of 1.553 billion yuan in the fourth quarter, a year-on-year increase of 63.43%; In 2022q1, the company achieved a revenue of 1.341 billion yuan, a year-on-year increase of 40.84%. The company’s revenue increased rapidly and the downstream demand was released rapidly. On the profit side, the net profit attributable to the parent company was 1.954 billion yuan, a year-on-year increase of 142.28%, and the net profit deducted from non attributable to the parent company was 1.796 billion yuan, a year-on-year increase of 158.10%. In the fourth quarter alone, the company realized a net profit attributable to the parent company of 496 million yuan, a year-on-year increase of 307.33%, and deducted a net profit not attributable to the parent company of 437 million yuan, a year-on-year increase of 510.42%. In 2022q1, the company realized a net profit attributable to the parent company of 531 million yuan, a year-on-year increase of 63.91%, and deducted a net profit not attributable to the parent company of 508 million yuan, a year-on-year increase of 64.76%. The company’s profit growth rate is significantly higher than the revenue growth rate, showing a high scale effect. In terms of profit margin, the gross profit margin of the company in 2021 was 59.48%, with a year-on-year increase of 7.15pct, and the net profit margin was 36.57%, with a year-on-year increase of 11.91pct. In 2022q1, the profit margin was further improved, with a gross profit margin of 63.89%, a year-on-year increase of 9.90pct, and a net profit margin of 39.56%, a year-on-year increase of 5.57pct. The company’s profit margin has been greatly improved and its profitability has been continuously enhanced.
The scale of special integrated circuits doubled and the overall profitability improved significantly. In terms of business, the company’s special integrated circuit achieved a revenue of RMB 3.364 billion in 2021, with a year-on-year increase of 101.08%, a gross profit margin of 77.20%, a year-on-year decrease of 2.44pct. As the company’s largest business, the demand was released rapidly and the revenue increased rapidly; The revenue of intelligent security chip was 1.664 billion yuan, with a year-on-year increase of 22.11%, and the gross profit margin was 31.17%, with a year-on-year increase of 6.34 PCT. As the second largest business of the company, the profitability was greatly improved; The revenue of crystal components was 271 million yuan, with a year-on-year increase of 37.60%, and the gross profit margin was 20.82%, with a year-on-year increase of 1.07pct. At the subsidiary level, China microelectronics achieved a revenue of 3.365 billion yuan, a year-on-year increase of 101.11%, and the net profit margin was 54.41 (year-on-year + 1.99pct); Ziguang Tongxin achieved a revenue of 1.382 billion yuan, a year-on-year increase of 13.31%, and a net profit margin of 4.00% (year-on-year + 0.97pct); Ziguang Tongchuang, a joint-stock company, realized mass production and delivery of large-scale FPGA, doubled the total delivery volume, realized a revenue of 782 million yuan, a year-on-year increase of 147.75%, significantly reversed losses on the profit side, and the net profit margin reached 5.24%.
The cost rate was well controlled and the R & D investment increased significantly. The company’s three expenses accounted for 9.10% in 2021, with a year-on-year decrease of 0.74pct. Among them, the sales expense rate was 4.57% (year-on-year -1.24pct), the management expense rate was 4.17% (year-on-year + 0.16pct), and the financial expense rate was 0.36% (year-on-year + 0.34pct). The proportion of three fees in 2022q1 was 8.21%, with a year-on-year decrease of 1.25pct, of which the sales expense rate was 4.02% (year-on-year -0.54pct), the management expense rate was 3.83% (year-on-year -0.49pct), and the financial expense rate was 0.36% (year-on-year -0.22pct). The cost rate of the company is well controlled and the level of operation and management is high. The company’s R & D expenditure in 2021 was 632 million yuan, with a year-on-year increase of 82.25%, and the R & D expenditure rate was 11.83% (year-on-year + 1.23 PCT); In 2022q1, the R & D cost was 183 million yuan, a year-on-year increase of 127.33%, and the R & D cost rate was 13.62% (year-on-year + 5.18pct). The company’s R & D investment has increased significantly, and the product competitiveness is expected to continue to strengthen.
The cash flow situation has improved significantly and the orders on hand are full. The company’s operating cash flow in 2022 was 1.193 billion yuan, with a year-on-year increase of 185.51%, and the company’s cash flow improved significantly. At the end of 2021, the company’s contractual liabilities were 471 million yuan, an increase of 211.14% year-on-year, and the company had full orders on hand. In terms of accounts receivable, the company reached 2.372 billion yuan at the end of 2021, with a year-on-year increase of 42.43%, which was significantly lower than the growth rate of revenue, indicating that the company’s collection is good and its operation is expected to continue to improve. The company’s inventory at the end of 2021 was 1.223 billion yuan, with a year-on-year increase of 37.32%. The inventory growth rate was also significantly lower than the company’s revenue growth, indicating that the company’s product delivery was smooth.
Investment suggestion: the downstream demand of special fields is rapidly released. We increase the company’s profit forecast. It is estimated that the company’s revenue from 2022 to 2024 will be 7.535 billion yuan, 10.405 billion yuan and 13.93 billion yuan respectively (the value before 20222023 will be 7.365 billion yuan and 9.647 billion yuan respectively), and the net profit attributable to the parent company will be 3.034 billion yuan, 4.553 billion yuan and 6.502 billion yuan respectively (the value before 20222023 will be 2.968 billion yuan and 4.018 billion yuan respectively), and the corresponding EPS will be 2.34 billion yuan, 3.74 billion yuan 5.86 yuan. The company has high technical barriers in the field of integrated circuits and maintains the “buy” rating.
Risk warning event: special orders are not as expected; Product delivery is not as expected; The profit forecast is lower than expected.
